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<br />. <br /> <br />. <br /> <br />1-3 <br /> <br />Western's FY 1981 Power Repayment Study (PRS) shows the rate-setting <br />"pinch point" occurring in the fiscal year 2057. In that year, the level of <br />the proposed rate is established by certain future irriga.tion projects with <br /> <br />development periods ending in FY 2007 with subsequent repayment to be completed <br /> <br />fifty years later in FY 2057. Storage unit power revenues above those needed <br /> <br />to pay annual costs and to repay storage unit investment costs are apportioned <br /> <br />to repayment of participating irrigation project costs in the four Upper 8asin <br /> <br />States (Colorado, New Mexico, Utah and Wyoming) according to the formula in <br />Public Law 84-485. In Western's FY 1981 PRS the FY 2057 rate-setting point is <br /> <br />caused by Western's proposed repayment requirements for participating irriga- <br /> <br />tion projects in the state of Utah. The study shows a surplus of funds for <br /> <br />participating irrigation projects in other states. <br /> <br />Review Procedure <br /> <br />Our analysis of the proposed rate increase has included a review of <br /> <br />the basic guidelines utilized in establishing the rate levels, a review of the <br /> <br />information contained in the Rate Brochure, an analysis of the assumptions used <br /> <br />in developing estimates of future annual operating expenses and revenues, and <br /> <br />an analysis of alternatives to the criteria and assumptions used by Western. <br /> <br />With the cooperation of the Salt Lake City Area Office of Western we have been <br /> <br />able to run alternative power repayment studies using their computer model. <br /> <br />The programs have been rerun using input data and assumptions which are consis- <br /> <br />tent with the comments and conclusions herein. The results of these computer <br /> <br />analyses are included herewith when appropriate. <br />